Top Investor Declares Palantir Stock’s Predictability
Palantir Technologies (NASDAQ:PLTR) continues to surpass market expectations, consistently delivering impressive financial results. Its latest earnings report for Q3 2025 highlights significant growth, raising questions about its valuation and future prospects.
Impressive Financial Performance
In Q3 2025, Palantir reported a remarkable 63% year-over-year increase in revenues. U.S. commercial sales soared by an astonishing 121% compared to Q3 2024. This performance showcases the company’s strong market position and ability to drive sales growth.
Rule of 40 Score
The company achieved a Rule of 40 score of 114%, a 20-point increase from the previous quarter. This places Palantir well ahead of its software peers and emphasizes the strength of its business model.
Top Investor Insights
Julian Lin, a prominent investor ranked among the top 1% of stock professionals on TipRanks, has expressed skepticism about Palantir’s long-term investment potential. Despite acknowledging the impressive growth, Lin believes the current valuation reflects ambitious growth expectations already priced into the stock.
- Financial Highlights:
- Q3 2025 Revenue Growth: 63%
- U.S. Commercial Sales Increase: 121%
- Rule of 40 Score: 114%
- Investor Stance: Strong Sell rating from Julian Lin.
- Wall Street Consensus:
- 3 Buys
- 11 Holds
- 2 Sells
Future Outlook and Valuation Concerns
Lin warns that Palantir’s current growth trajectory may not be sustainable. He acknowledges the company’s “unprecedented” revenue upticks and a “bulletproof” financial position, yet he cautions about steep mathematical challenges that may impede continuous acceleration in revenue growth.
The investor maintains that while Palantir has earned a premium valuation, the stock’s trading multiple of 7.7x expected sales for 2034 may be excessive. He reiterates his Strong Sell rating, citing concerns over potential deceleration in growth leading to a contraction in valuation.
Market Sentiment and Price Predictions
Wall Street’s sentiment towards Palantir reflects caution. The current consensus rating is classified as Hold, with a 12-month price target averaging $187.87. This estimation implies a modest upside of about 10% from its recent price levels.
Investors considering Palantir should conduct thorough analysis and consider various factors influencing its stock price before making investment decisions.
